Bank cuts rates by 100 basis points

News Category: Industry News

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Property software users could benefit from today's one per cent cut in interest rates by the Bank of England, it has been suggested.

The Bank's monetary policy committee voted to decrease rates from three per cent to two per cent, with weakening business surveys and suggestions that the economic downturn is gathering pace cited as reasons behind the move.

Landlords might benefit if mortgage lenders pass on interest rate cuts onto their buy-to-let borrowers.

Michael Coogan, director general at the Council of Mortgage Lenders, said: "It is not realistic to expect them all to react in the same way to the rate cut - although where they believe they can cut mortgage rates, they will."

The government must interact with all mortgage lenders - not just the large banks - to help revive the housing market, he added.

At two per cent, the UK base rate is at its lowest level since 1951.

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